A school has sold many raffle tickets to raise funds for the school library. Each ticket has a code. When aticket is presented at the library book sale, it can be redeemed for $1, $5, or $10. The dollar amount beingassigned to each ticket is determined by a lottery before the book sale. Rachael has bought 30 tickets for her family. When she presents these 30 tickets at the book sale,•14 tickets are redeemed for $1,•12 tickets are redeemed for $5, and•4 tickets are redeemed for $10.She is wondering whether the school is actually losing money out of the raffle .(a) Formulate the null and alternative hypotheses that can be used to determine whether the school islosing money out of the raffle. Note that the issue is whether the school is losing money, not whetherthe school is breaking even. Please think about what the implication is when formulating the null andalternative hypotheses. (b) Find thep-value for the hypothesis test. (c) What should Rachael’s conclusion be atα= 0.05? (d) What should Rachael’s conclusion be atα= 0.01?
A school has sold many raffle tickets to raise funds for the school library. Each ticket has a code. When aticket is presented at the library book sale, it can be redeemed for $1, $5, or $10. The dollar amount beingassigned to each ticket is determined by a lottery before the book sale.
Rachael has bought 30 tickets for her family. When she presents these 30 tickets at the book sale,•14 tickets are redeemed for $1,•12 tickets are redeemed for $5, and•4 tickets are redeemed for $10.She is wondering whether the school is actually losing money out of the raffle
.(a) Formulate the null and alternative hypotheses that can be used to determine whether the school islosing money out of the raffle. Note that the issue is whether the school is losing money, not whetherthe school is breaking even. Please think about what the implication is when formulating the null andalternative hypotheses.
(b) Find thep-value for the hypothesis test.
(c) What should Rachael’s conclusion be atα= 0.05?
(d) What should Rachael’s conclusion be atα= 0.01?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
